Stephen Gengaro, a managing director at Stifel, said there are “multiple layers” to Tesla and its valuation.
Tesla shares have been on a positive footing this year as investors who were pessimistic about the prospects for Elon Musk’s electric car maker have changed and the company is on the brink of rolling out its long-awaited robotaxi fleet.
The company’s shares snapped a 13-session winning streak on Friday, its longest stretch since June 13, 2023, closing at $251.52 per share, according to tracking by Dow Jones Market Data Group..
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| TSLA | Tesla Inc. | 251.52 | +5.13 | +2.08% |
The move helped eliminate the company’s annual loss, which was about 11 percent last week, and sent its shares up 1.2 percent through Friday.
Elon Musk mocks fellow billionaire Mark Zuckerberg
The company’s shares have risen 27% this month, compared with a 2% gain for the S&P 500.
Last Tuesday, the company reported second-quarter deliveries of 443,956 vehicles, including 422,405 Model 3 and Y vehicles and 21,551 other EVs, beating expectations. Still, deliveries were down more than 4% compared to the same period last year.
Tesla’s second-quarter deliveries beat expectations
A visitor checks out a Tesla Model Y at the 40th Thailand International Motor Expo at Impact Challenger Hall in Nonthaburi. (Peerapol Boonyakiat/SOPA Images/LightRocket via Getty Images)
Looking beyond those numbers, Wedbush Securities analyst Dan Ives wrote in a recent client note that demand for EVs is stabilizing globally and “the next phase of the Tesla story is unfolding.”
“The key going forward for Tesla stock is for the Street to realize that, in our view, Tesla is the most undervalued AI company on the market. With a historic Robotaxi Day coming up for Musk and Tesla on August 8th, it will pave the way for FSD (fully self-driving) and autonomous driving future. We maintain our outperform rating and bullish outlook at $300-$400,” he said.
Ives is among the majority of analysts covering the stock, with 22 rating it a buy, compared with 18 recommending a hold and 10 recommending a sell, according to ThomsonOne.
On Sunday, Musk retweeted a Tesla post from Whole Mars Catalog showing a hands-free Tesla car driving “from Golden Gate Park to Fort Point without any intervention.”
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Tesla is scheduled to report second-quarter results after the close of trading on July 23.
